We all have our individual impressions of IBM, many from the 1960s, when the company was seen as the safest source of business processing support. Led for 40 years by Thomas J. Watson, Sr., as an enlightened source of mechanical computing capability based on punch cards. There would inevitably be challenges of corporate and family (and technological) succession. Tom Watson, Jr., became the internal champion of transitioning the firm to electronic computing. And he may have been the only person who could oppose his father in a company built on yes men; apparently, his own motivation to transform IBM was an intense antipathy toward his father.
Marc Wortman, PhD, is a multi-award-winning independent historian and freelance journalist. He is the author of five books on American military, technology, and social history, most recently The Greatest Capitalist Who Ever Lived: Tom Watson Jr. and the Epic Story of How IBM Created the Digital Age (PublicAffairs, 2023). A New York Times Book Review Editor’s Choice, it is the first solo biography of the leader who launched the computer revolution. The U.S. Military History Group named his previous book, Admiral Hyman Rickover: Engineer of Power (Yale University Press, 2022), winner of the 2023 Captain Richard Lukaszewicz Memorial Book Award as the outstanding military history book of the year.
His other books are 1941: Fighting the Shadow War, A Divided America in a World at War (Atlantic Monthly, 2016); The Bonfire: The Siege and Burning of Atlanta (PublicAffairs, 2009), and The Millionaires’ Unit: The Aristocratic Flyboys Who Fought the Great War and Invented American Air Power (PublicAffairs, 2006). A feature-length documentary based on The Millionaires’ Unit is available on streaming services.
Following college at Brown University, he received a doctorate in Comparative Literature from Princeton University. He lives with his family in New Haven.
Summary
Our speaker—historian and journalist Marc Wortman— on shared the life and legacy of Thomas J. Watson Jr., his impact on IBM, and its pivotal role in creating the modern digital age. Marc explored the fascinating interplay of technology, leadership, and personal drama that defined Watson Jr.’s tenure and IBM’s rise to prominence. The talk was based on his research for his recent book, The Greatest Capitalist Who Ever Lived: Tom Watson Jr. and the Epic Story of How IBM Created the Digital Age (A New York Times Book Review Editor’s Choice).
Marc opened by acknowledging IBM’s historical significance, particularly under the leadership of Thomas J. Watson Sr., who transformed a failing company into a leader in business computing using mechanical systems based on punch cards. Wortman describes Watson Sr. as a charismatic but domineering leader who cultivated a corporate culture of loyalty and discipline, often to the point of fostering a cult of personality around himself. IBM became renowned for its guaranteed employment and superior worker benefits, a model referred to as the “IBM way.”
Transition to Thomas J. Watson Jr.
Thomas J. Watson Jr., the oldest son, had a contentious relationship with his father and initially resisted joining IBM. Described as rebellious and plagued by personal struggles, Watson Jr. ultimately found discipline and confidence as a World War II bomber pilot. His wartime experiences revealed his aptitude for leadership, decision-making, and logistics, prompting him to return to IBM, where he eventually assumed leadership in 1956.
Four Pivotal Decisions
Wortman structures his talk around four major decisions Watson Jr. made during his career, each demonstrating his forward-thinking approach and willingness to take risks:
- Commitment to Electronics:
- After the war, Watson Jr. recognized the potential of electronic computing, even as his father remained skeptical. Despite initial setbacks, Watson Jr. championed IBM’s shift from mechanical tabulators to electronic computers, leading to the creation of the IBM 650, the first mass-produced computer.
- Cultural and Organizational Revamp:
- Upon taking full control of IBM, Watson Jr. dismantled his father’s centralized, personality-driven management style. He decentralized decision-making, promoted innovation, and cultivated a culture that valued creative thinking over deference. This transformation prepared IBM to adapt to the rapidly changing technological landscape.
- The System/360 Gamble:
- Watson Jr.’s boldest move was the introduction of the IBM System/360, a revolutionary computer family designed to be compatible across applications. The project, costing over $5 billion (an unprecedented private investment), faced significant technical challenges but ultimately redefined computing, creating a standard for hardware compatibility and software flexibility. The System/360’s success cemented IBM’s dominance in the industry.
- Choosing IBM Over Family:
- During the System/360 crisis, Watson Jr. made the difficult decision to replace his brother, Dick Watson, who was struggling in his role overseeing engineering and manufacturing. This decision, though professionally necessary, deeply strained family relationships and underscored the personal costs of leadership.
IBM’s Legacy under Watson Jr.
Under Watson Jr.’s leadership, IBM became the world’s most valuable company, dominating the computing industry and driving the development of foundational technologies such as magnetic storage, database systems, and early artificial intelligence. The System/360 series alone set the stage for modern computing, enabling advancements in industries ranging from banking to aerospace.
Reflections and Conclusion
The presentation concludes by highlighting Watson Jr.’s extraordinary impact on both IBM and the global economy, justifying his designation as “the greatest capitalist who ever lived.” Wortman also reflects on the personal sacrifices and tragedies intertwined with Watson Jr.’s professional success, offering a nuanced portrait of a transformative leader.
Audience engagement included questions about IBM’s historical role, its relationships with other companies, and its long-term trajectory, providing additional context on the company’s influence and evolution. The session ended with Wortman signing copies of his book and expressing gratitude to the attendees.